China to pass new foreign investment law in the wake of a trade war

China is said to maintain a highly clear policy with respect to its relationship with the United States.

China is reportedly on the verge of passing a novel foreign investment law in a bid to level the playing field for investors worldwide equipped with legal safeguards on technology transfer and IPR. Sources familiar with the knowledge of the matter claim that these were a part of some of the demands of President Donald Trump drawn up to end the trade war between both the countries.

Reportedly, China and the United States have been embroiled in an ugly trade war ever since the imposition of heavy tariffs on aluminum and steel items imported from China, by President Trump, since March last year. In consequence, China went on to impose heavy tariffs on American imports worth billions of dollars, the result of which sparked fears worldwide regarding a trade war.

In a bid to reach the end of the tunnel, China has scrambled up to hurriedly pass the new foreign investment law, that will apparently be submitted to the National People's Congress (NPC) – the top legislature, for a review. Speaking on the urgency of delivering the same, Zhang Yesui, spokesperson, NPC, was quoted stating that the interests of both the nations are severely interwoven and a U.S.-China relationship on the brink of conflict is not in anyone’s interest.

Elaborating further, Zhang asserts that China maintains a highly clear policy with respect to its relationship with the United States, that seemingly is not encompassed with conflicts, but is based on a no-confrontation, win-win, mutual respect cooperation.

Reliable reports affirm that major details of the deal are still largely unsettled, given that pivotal discussions are still on the go. However, according to The New York Times, both the nations seem to have agreed on a certain pact that may entail Beijing to make mammoth purchases of American energy and agricultural goods and also reduce specific barriers that have been restraining American firms from operating in China.

Also, it is being speculated that the U.S. may,  in turn, drop its tariffs on perhaps a minimum of USD 200 billion of the USD 250 billion worth of Chinese imports that are presently subject to American levies.